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The report says AI revenue has reached a tipping point and is beginning to prove the economic rationale for investing in data centers

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Golden Finance reports that on July 16, a report by research firm Exponential View showed that revenue from artificial intelligence (AI) has reached a tipping point, indicating that the investment tech companies are making in this field—amounting to thousands of billions of dollars—may be economically sustainable. The report showed that global AI sales revenue from hyperscale cloud providers and emerging cloud providers reached $25 billion, marking the second consecutive quarter exceeding the estimated depreciation costs of $21 billion associated with industry spending on data centers and chips. This milestone suggests that AI companies’ revenues have begun to be sufficient to cover their capital expenditure costs, but profit margins remain very thin.
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